Diversification Strategy for Social Networking website

Diversification Strategy

Introduction

The most important notion before implementing the diversification strategy for Funder Mifflin first the need to understand what is diversification is important. However, often companies make products diversification strategies in markets, sales force, in the use of different channels or, in some cases, programs partnership or integration with other companies to add more value to their business proposals and gain recognition in the market, provided it is a source of economic and business results.

Discussion

Competitive Advantage

Funder Mifflin would like people, develops skills remarkable, known as intangible strategic assets, which are pivotal to the projects diversification and growth. These skills often become powerful weapons competitive advantage, and, therefore, must be very aware of them, their scope and their continued progress. There are companies that got distinguished, for example, by its adaptation to change and flexibility, others because of their excellent service and quality by incorporating in the specifications of their products. Thus, Funder Mifflin will gather competitive advantage and will be able to achieve a market share (Kenny, 2009).

Pricing

The Funder Mifflin will look into several factors to determine the pricing strategy during the diversification. However, the price that the company appointed to be somewhere between the level that is too low to make a profit, and the level that is too high to support any demand. The cost of the product sets a lower limit price; the consumer perception of product value defines an upper limit. Moreover, to determine the level of prices - break-even analysis, when the company is trying to determine the price at which you reach the balance of income and expenses. The number of companies in which pricing is based on the perception of customer value of the product is constantly growing. Pricing on the perception of the value of goods used by consumers as a key basis for determining the level of prices for the cost the seller and buyer perceptions of price. Pricing strategy of following the prices of competitors used in pricing, pay little attention to costs and demand (Kenny, 2009).

Pros and Cons of diversification

There are several positives that get highlighted and be effectively incorporated with Funder Mifflin. The most important plus is the diversification of business sustainability. This is an obvious and almost the only advantage. Call it a competitive advantage can only be suspended because, strictly speaking, it is purely financial. However, a reliable source of income is ...